Creating a Budget When You Don’t Know Your Expenses

September 14, 2017January 19, 2018Melissa

Creating a Budget

Creating a budget can be very overwhelming – especially when you’ve just moved and you don’t know what your expenses will be. I’ve definitely been there. When I arrived in Spain in 2015, I came with $2000 as my starter budget, but without a plan in place, I blew through over half of it before receiving my first paycheck. If I could do it again, what would I do differently? This is what I recommend for incoming auxiliares de conversacion.

I would begin by creating a budget using the 50/20/30 Rule. Here’s how it breaks down:

50% of your income goes to cover your NEEDS – Things like rent, food, electricity, transportation, internet, etc. These are the absolute basics you will pay for every month.
20% of your income goes to SAVINGS – You may need to buy a plane ticket at the end of the year. Or, if you’re staying in Spain over the summer, you’ll need a summer fund for when other opportunities dry up.
30% of your income can go to WANTS – things that you could do without in a pinch, but make life more enjoyable: eating out, drinks, travel, new clothes, etc. These things are likely the reason you are here.

Creating a Budget with the Auxiliar Income

So how would it look for an auxiliar creating a budget based on this plan?

Average Income in Spain

September 1, 2017December 7, 2020Melissa

Average Income: Why it Matters

Updated on December 7, 2020

The average income of a population is often overlooked when people prepare to teach abroad. We usually want to know how much we can make, and that information isn’t difficult to find. According to Go Overseas, the average income for an English teacher in Spain is between 700 and 1800 euros. As an auxiliar de conversacion, you know that your income will be between 700 and 1000 euros a month, depending on where you’re assigned to teach.

What may be more important than your actual salary, however, is how it compares to the average salary where you will live. This will determine how comfortably you will live compared to other people in your city on your auxilar income alone.

What to do when you're too bored to bother

Surviving the Summer Slump

July 19, 2017September 5, 2017Melissa

Diagnosing the Summer Slump

Ever since I was old enough to be in school, I’ve looked forward to that glorious time of year when the last bell rings and I’m finally free. Now, as a teacher, I feel the same yearly excitement. The freedom to kick back and do absolutely nothing has arrived.

But then something inevitably happens partway through the summer. That something is called the Summer Slump. According to Urban Dictionary, the Summer Slump is “A period during summer in which a person performs inefficiently due to the excessive amount of free time on there hands.”

The truth is, an abundance of free time can become overwhelming. Maybe there’s nothing you specifically have to do, so you don’t feel bad bingeing on your favorite television programs. That’s fine. I feed my addiction through ORORO TV (Note: if you subscribe through my link, you and I will both receive a discount). But when you come up for air, you often find yourself feeling disoriented, and maybe even a little unmotivated to do anything about it.

When you find yourself slipping into the Slump, and you’re so bored that you can’t even bother to do anything about it, it’s good to have a plan in place to pull you back out. Here’s my plan:

From Whole Chicken to 12 Meals – Budget Cooking

July 12, 2017September 5, 2017Melissa

One of the best ways to save money on food is to cook at home. I have already written about how I keep grocery prices lower with cost comparisons from various stores. Today I’m going to focus on how to prepare 12 or more low-cost meals–and all from just one whole chicken!

The Value of a Whole Chicken

When I first started doing my price comparisons, I was looking for the lowest price per kilo on chicken breasts. If you remember from my notes, the best price was 5.19 euros per kilo at Mercadona. As I got more comfortable cooking, I started to look at other cuts of chicken, and was really impressed by the price per kilo of a whole chicken: 2.18 euros per kilo!

The only problem was that I didn’t know how to cook a whole chicken. But for a savings of 3.01 euros per kilo, I was sure willing to learn!

Debt Management For Moving Abroad

July 5, 2017June 22, 2018Melissa

Raise your hand if you have debt. Yup, me too. According to Market Watch, Americans have $12.73 trillion worth of household debt as of March 2017, topping the 2008 peak of $12.68 trillion! About $1 trillion of that is in credit cards alone. How much of that is YOUR share?

the shame of debt — You, me, and about 80% of Americans.

We all know that debt holds us back, but what can we actually do about it? The first thing you should do is acknowledge it. Add it up and get a total. I like to use Unbury Me to visualize how different steps will affect my payoff date. Then, when I need to make a payment, I use TransferWise to send money back to my US account.

Debt Management Abroad

Moving abroad with no debt is ideal, but for many of us it isn’t realistic. If you can pay off all of your debts before moving, you will have less required monthly expenses. However, you should not use up all of your savings in order to achieve this, as you will need a starter budget to help yourself get set up in your new location.

When moving abroad, you can’t just focus on your total debt. You need to break it down into individual loans and monthly payments. Many personal finance experts, such as Dave Ramsey and Suzy Orman will recommend that you eliminate debt by lowest debt first (Dave) or highest interest debt first (Suzy). I respect both of their opinions.

However, for people moving abroad, the most important thing is minimizing monthly expenses. When I moved to Spain, I had $262.27 in minimum monthly payments. That’s a lot when your steady income is 700 euros a month. Now I’m down to about $42 a month in required debt repayment. How did I do that? Let’s take a look:

Finding an Apartment in Spain after arrival

Apartments in Spain: After Arrival

June 26, 2017September 7, 2018Melissa

Finding an Apartment in Spain

This is Part 2 of Finding an Apartment in Spain. See Part 1 – Apartments in Spain: Before Arrival.

When You Arrive

Hopefully by the time you arrive to Spain, you will have already eliminated the places that either aren’t right for you, or are misleading. This will save you a lot of time. If you will be living in a large city like Madrid, you will need to have quite a few options on your list, because finding an apartment in the fall can be difficult. If you are in a smaller city, a smaller list will suffice. The quicker you can find an apartment, the less money you will have to spend on hostels or Airbnb.

By one week before I moved to Spain, I had narrowed down my search to just a handful of apartments. I made appointments with the girls who were currently living in them via WhatsApp. Talking to your potential roommates in advance is a good way to know if you’ll be a good fit, and save you from having to move out later. I ended up renting the first apartment I saw in Huelva, and I canceled my other appointments. The only reason I did this is because I was sure. I knew I would be happy living in that apartment, with those roommates, and at that price. Here are a few things you should look for to make sure the apartment is right for you.

Apartment Hunting in Spain: Before Arrival

June 23, 2017September 5, 2017Melissa

Finding an Apartment in Spain

Before Arrival

Because your apartment will be your largest living expense in Spain, it is important that you start researching apartments from home. Ideally, your apartment shouldn’t cost any more than 25-35% of your budget, but in some places this may be difficult and you might have to go as high as 40%. There are definitely ways to increase your income with side hustles while living in Spain, but I don’t recommend including them in your core budget items, because they aren’t guaranteed income. I recommend checking out Numbeo to find out the average for apartments in your city.

Average Apartment Cost

Let’s look at mine, in Vitoria-Gasteiz:

apartment cost averages vitoria — Average Housing Costs in Vitoria-Gasteiz

You’ll see that the average rent per month for a one-bedroom in the city center is about 600 euros, or 85.7% of your auxiliar budget. This won’t work for anyone except for a couple. If you’re both auxiliares, and making 1400 euros total, it would be 42.9% of your budget. This is doable, but still high, and I would only consider it if your utilities are included.

A one-bedroom outside of the city center is 450 euros on average, or 64.3% of your income. This is also too high for a single person on an auxiliar budget. As a couple, you can get it down to 32.1% This is a good percentage, and is what my partner and I pay.

Living Expenses in Spain

June 21, 2017June 22, 2018Melissa

Research Your Living Expenses

Before moving to Spain to teach English with the Auxiliares de Conversacion program, I did a lot of research to try to figure out what my living expenses would be. There are some really great resources with sample budgets from different cities, like this series by COMO Consulting. Obviously, there won’t be information for every possible city. Neither of my two cities (Huelva, Andalusia and Vitoria-Gasteiz, Basque Country) were included, but you can still use them as a benchmark to get a pretty good idea.

Something to keep in mind when looking at other people’s living expenses is that even though you see WHAT they spend, you don’t often get a glimpse into HOW they spend. That is what I intend to do with this post. I’m going to use examples of my living expenses from Huelva and from Vitoria-Gasteiz, but the techniques for cutting costs should be applicable in any city.

MY LIVING EXPENSES

Rent: 225

Groceries: 65

Phone: 10

Electricity: 25

Internet: 16

TOTAL: 341 euros

This is my share of required monthly living expenses in northern Spain. Everything else is variable. If you can keep your core living expenses at around half of your income, you’ll have a lot more flexibility for some of the other things you’d like to do, such as traveling, shopping, and saving.

But how do you keep your expenses so low? The cost of living difference does most of the work for you. The north of Spain is considered an expensive region in comparison to other communities in Spain, but with a little planning, you can make it work. Here is a breakdown of my living expenses in the north and the south, and how different choices affect the price.